The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.
In the past six months, the stock of Just Dial has underperformed the market by falling 40 per cent, as compared to a 19 per cent decline in the S&P BSE Sensex. However, the stock has recovered 53 per cent from its 52-week low of Rs 250 touched on March 26, 2020 in the intra-day trade.
At 09:52 am, Just Dial was trading 9 per cent higher at Rs 379 on the BSE, as against a 0.02 per decline in the S&P BSE Sensex. A combined 2.3 million equity shares have changed hands on the counter on the NSE and BSE so far.